Is it advisable to invest in Low Income LIHTC apartment complex?

[Rama Krishna]

Hi All,

 I am new to multi-family investing, is it advisable to do the first deal on a LIHTC (Low Income Housing Tax Credits) apartment complex? 

 What are the pros and cons?

 Do we need to pay fewer property taxes if we buy LIHTC property?

Any professional help I can get, so we can use their services? 

Its a senior housing in North carolina and these are the FAQ's in due diligence:

LIHTC- Low-Income Housing Tax Credit – Affordable Housing

What administrative work is required to purchase a LIHTC property?

-Within 24 hours of a fully executed purchase agreement the buyer should notice the North

Carolina Housing Finance Agency (form will be provided).

How are rents based?

-Rents are based on 60% of the current AMI (Average Median Income). 

Can I grow rents?

-Ownership can request an annual increase from the NCHFA

Can I also accept section 8 vouchers?

-Yes, you can. 

What do I have to do to be compliant?

-NCHFA conducts a random lease audit sample of 5% of leases every 3 years

-NCHFA conducts a property condition assessment every 3 years

When does the program expire?

-The property is already in an extended use period, in another 13 years the property can become

market rate.

Thanks for your answers,

Rama